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Venture Global: Transforming Energy Markets
Venture Global S1 Deep Dive
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S1 Deep Dive
Venture Global in one minute
Venture Global's IPO raised $1.75 billion, valuing the company at $60 billion, despite a 4% drop in shares on its debut. The largest oil and gas IPO in a decade, it highlights U.S. LNG growth, with plans for massive production capacity across five Louisiana facilities under the Trump administration's support.
Venture Global is revolutionizing the liquefied natural gas (LNG) industry with an innovative approach that combines scalability, speed, and cost-efficiency. Founded with a vision to transform LNG production and export, the company has rapidly established itself as a global leader in delivering this critical fuel. At the heart of Venture Global’s strategy is its modular, factory-fabricated design, enabling LNG to reach international markets years faster than traditional methods and at a lower cost. For Venture Global, innovation isn’t just a method—it’s a competitive advantage.
Natural gas, a vital resource for reliable electricity and industrial growth, gains new versatility when converted to LNG. By supercooling gas to -260°F, it reduces to 1/600th of its original volume, allowing efficient transport via tankers to markets lacking domestic supply. This process displaces higher-carbon fuels like coal and diesel, reinforcing LNG as a cornerstone of the global shift toward cleaner energy. Venture Global’s ability to deliver faster and cheaper positions it to meet the surging demand for LNG while supporting energy security and sustainability worldwide.
The company is actively developing five major LNG export projects near Louisiana’s Gulf Coast, using its signature "design one, build many" strategy. Together, these projects aim to deliver a peak production capacity of 143.8 million tons per annum (mtpa), including 39.4 mtpa of excess capacity for added flexibility and growth. By embracing a modular, pre-assembled construction approach, Venture Global reduces on-site risks and accelerates timelines, with its first projects, Calcasieu and Plaquemines, producing LNG within two and a half years of investment decisions—a feat almost unheard of in the industry.a
Venture Global’s strength lies in its commitment to efficiency, reliability, and adaptability. It has leveraged these qualities to establish a competitive advantage in a market where cost and speed win. To explore how Venture Global’s innovative methods are reshaping the future of energy, stay tuned.
Introduction
It wasn’t supposed to be just about gas, though it is. Venture Global doesn’t just produce LNG—it reshapes how the world thinks about energy. The company’s innovative, modular approach to liquefied natural gas production has upended an industry long entrenched in tradition. By replacing sprawling, stick-built facilities with a streamlined, factory-fabricated model, Venture Global delivers LNG faster, cheaper, and at a scale the world demands.
Natural gas is no ordinary commodity. It powers cities, underpins economies, and stands as a cleaner alternative to coal and heavy oil. Supercooled to -260°F, it shrinks to a liquid form just 1/600th of its original size—compact enough to traverse oceans and reach markets starved of domestic supply. It’s not just a technical marvel; it’s a vision for a cleaner energy future. Venture Global doesn’t merely sell LNG—it delivers energy security and, in doing so, helps stabilize a world in flux.
But innovation in this space isn’t easy. Traditional LNG projects often take years, sometimes decades, to come online, bogged down by complexity and risk. Venture Global’s “design one, build many” philosophy sidesteps these pitfalls, turning what was once bespoke into something repeatable and scalable. Modular components are manufactured overseas and shipped to Louisiana, where five flagship projects are setting new industry standards. At the heart of it all is speed: LNG flows within just two and a half years of investment, compared to the typical five or more. The company isn’t just competing—it’s redefining the terms of the game.
The company doesn’t just build projects; it learns from them, each one feeding into the next in a virtuous cycle of optimization. Call it industrial mindfulness—an ethos of continuous improvement in the service of a world that needs more energy, and cleaner energy, now.
This philosophy extends beyond construction. LNG isn’t just extracted and shipped; it’s part of a carefully orchestrated ecosystem. Venture Global integrates every stage, from securing natural gas supplies to contracting its own fleet of LNG tankers to developing regasification facilities in Europe. These aren’t just operations; they’re a testament to the company’s belief that energy infrastructure can be as agile and forward-thinking as any SaaS platform or tech unicorn.
But the question persists: can culture—or in this case, process—be a moat? Venture Global’s approach suggests that it can. In an industry where execution risk often derails the boldest plans, the company’s modular system offers a kind of operational zen: streamlined, repeatable, and relentlessly focused on outcomes. Like Costco’s founder Jim Sinegal once said, “Culture is not the most important thing in the world. It’s the only thing.”
Perhaps Venture Global is LNG’s answer to Costco—a company where speed and efficiency aren’t just advantages but the core of its DNA. It’s a business that trades not just on the commodity it delivers but on the transformation it represents. If the future of energy is faster, cleaner, and more adaptable, Venture Global isn’t just part of it—it’s defining it.
History
Founded in 2013, this two-person startup has grown into a formidable energy disruptor, reshaping the way liquefied natural gas (LNG) is developed, produced, and exported. Today, Venture Global employs over 1,400 people globally, commands nearly 6,000 acres of prime land in Louisiana, and is building five state-of-the-art LNG facilities that promise to transform the energy market.
But the company’s journey to prominence didn’t begin with an IPO or a pipeline of projects ready to go. In its earliest days, Venture Global was an idea—a bet on innovation in an industry resistant to change. By embracing modular, factory-fabricated designs over traditional on-site construction, the founders aimed to do something no one else was doing: deliver LNG faster, cheaper, and at a scale required to meet growing global energy demands.
It wasn’t until 2022, nearly a decade later, that the company began generating proceeds. But when the revenue finally arrived, it came in waves. By September 30, 2024, Venture Global had raised $54 billion in capital and generated $19.6 billion in gross proceeds from its commissioning cargos, turning a once-nascent idea into a major player in the energy industry. As of today, the company has executed 39.25 million tons per annum (mtpa) of LNG sales agreements and expects to generate an astonishing $107 billion in contracted revenue over the life of these agreements.
The traditional process for building LNG facilities is slow and expensive, often taking over a decade to deliver results. Venture Global's "design one, build many" philosophy broke that mold. Instead of relying on bespoke, stick-built designs, the company leaned on factory-fabricated components assembled off-site and shipped to Louisiana. The result? Projects like the Calcasieu and Plaquemines facilities, which began producing LNG just two and a half years after final investment decisions—a feat practically unheard of in the energy sector.
This focus on speed and efficiency has become the company’s hallmark. Venture Global isn’t just building LNG facilities; it’s building them faster, better, and more cost-effectively than its competitors. By reinvesting proceeds from one project into the next, the company has created a virtuous cycle of growth. The Calcasieu and Plaquemines projects, for example, have already begun funding the CP2, CP3, and Delta projects, enabling Venture Global to scale rapidly while minimizing risk.
But innovation doesn’t stop with construction. The company has integrated every facet of LNG production and delivery, from securing gas supplies to owning its own fleet of LNG tankers. It has even acquired regasification capacity at key European terminals, allowing it to deliver LNG directly to markets where it’s needed most. This vertical integration isn’t just smart—it’s strategic, giving Venture Global an edge in a fiercely competitive industry.
Despite its success, Venture Global has no intention of resting on its laurels. With plans for bolt-on expansions and further projects both domestic and international, the company is just getting started.
In an era where global energy security is paramount, Venture Global isn’t just a company to watch—it’s a company that’s changing the game. From its humble beginnings to its $1.75 billion IPO, the story of Venture Global is one of vision, perseverance, and a relentless drive to do things differently. Ten years from now, when we think about energy innovation, Venture Global may be the name that comes to mind first.
Market Opportunity
Venture Global's industry stands at the intersection of critical global challenges: energy security, decarbonization, and economic growth. Liquefied natural gas (LNG) plays a pivotal role in this dynamic. As nations strive to balance growing energy demands with the urgent need to reduce emissions, LNG offers a reliable, cleaner-burning alternative to coal and oil. The global LNG market is projected to grow significantly, with demand rising from 13% of global natural gas consumption in 2022 to 19% by 2050, according to the International Energy Agency (IEA).
This demand is underpinned by multiple trends. First, the global shift from coal to gas, driven by decarbonization efforts, is accelerating. In the U.S., coal-to-gas switching has already contributed to a 35% reduction in power sector COâ‚‚ emissions between 2000 and 2022. Globally, as governments implement more stringent environmental policies, the pace of this transition is expected to increase, ensuring natural gas's role as a critical bridge fuel.
Second, LNG is indispensable in supporting the expansion of renewable energy. Intermittent sources like wind and solar require a stable backup to ensure grid reliability. Natural gas-fired plants, which accounted for 40% of global natural gas consumption in 2023, provide the flexibility to balance renewable generation with demand.
Third, population and economic growth are major drivers. The global population is expected to reach 10 billion by 2050, with corresponding increases in energy-intensive needs like heating, electricity, and transportation. Developing regions in Asia, Africa, and Latin America will rely heavily on LNG imports as they transition from traditional fuels and expand their infrastructure.
Historically, LNG pricing relied heavily on oil-linked contracts, but the rise of U.S. LNG has shifted the market toward gas-linked benchmarks like Henry Hub (HH). This shift brings greater transparency, stability, and alignment with natural gas market fundamentals.
Regional benchmarks like Europe’s Title Transfer Facility (TTF) and Asia’s Japan-Korea Marker (JKM) further illustrate the market's complexity. For example, TTF reflects Europe’s supply and demand dynamics, while JKM caters to Asia-Pacific’s high energy needs and strong LNG demand. These benchmarks underscore LNG’s regionalized nature, where transportation costs, infrastructure, and geopolitical factors all influence pricing.
Adding another layer of complexity is the rise of the spot market. In 2023, spot and short-term contracts accounted for 35% of global LNG trade, up from just 19% in 2010. The flexibility of spot trading allows producers like Venture Global to capitalize on favorable market conditions, optimizing returns for uncontracted volumes. However, the majority of LNG trade—61% in 2023—still relies on long-term contracts, offering financial stability and supply assurance for both producers and buyers.
In a sector marked by logistical and geographical barriers, Venture Global’s model is a game-changer. The company’s innovative "design one, build many" approach leverages modular, factory-fabricated liquefaction trains, drastically reducing construction timelines and costs. Projects like Calcasieu Pass and Plaquemines have already demonstrated the success of this strategy, achieving first LNG production just two and a half years after final investment decisions—a timeline almost unheard of in the industry.
This rapid execution creates a virtuous cycle. By generating cash proceeds from commissioning cargos before full commercial operations, Venture Global can fund subsequent projects while minimizing reliance on traditional financing. This strategy enables the company to capture market share faster, optimize LNG sales, and self-fund bolt-on expansions, further increasing production capacity at existing facilities.
The company’s vertically integrated model further differentiates it. With investments in LNG tankers and regasification facilities, Venture Global extends its value chain, offering customers a seamless supply solution. For instance, its regasification capacity in Europe and Asia provides direct access to high-demand markets, while its fleet of state-of-the-art tankers ensures reliable delivery.
LNG projects are capital-intensive, with long development timelines and exposure to market volatility. Geopolitical risks, such as the war in Ukraine, further complicate global supply chains and price stability. Additionally, competition from established exporters like Qatar and Australia underscores the importance of maintaining cost advantages and operational efficiency.
However, these challenges also create opportunities. As global LNG demand outpaces supply—projected to reach a shortfall of 211 million tons per annum (mtpa) by 2050—Venture Global is well-positioned to fill the gap. Its focus on modular construction, flexible pricing strategies, and geographic diversification ensures it can adapt to changing market conditions while maintaining profitability.
As the world navigates the dual imperatives of economic growth and environmental sustainability, LNG will remain a cornerstone of the global energy mix. For countries transitioning away from coal, stabilizing renewable grids, or meeting surging electricity demand, LNG offers a reliable, scalable solution.
The question isn’t whether LNG will play a critical role in the energy future—it’s who will lead the charge. With its proven track record, innovative approach, and commitment to growth, Venture Global may very well be that leader.
Product/ Projects
Venture Global has transformed the landscape of liquefied natural gas (LNG) production and construction, establishing itself as a rapidly growing company meeting the global demand for LNG. The company's innovative, scalable, and repeatable approach enables LNG delivery to international markets years faster and at a lower cost than traditional methods. By providing clean, affordable fuel, Venture Global supports global energy security while addressing the increasing demand for reliable energy.
Natural gas plays a critical role worldwide as a resource for generating electricity, driving economic development, and supporting industrial growth. When supercooled to -260°F, natural gas converts to liquid form, reducing its volume to 1/600th of its original size. This transformation allows large quantities to be transported by LNG tankers to markets lacking domestic supply, replacing more carbon-intensive energy sources like coal and diesel, and contributing to a cleaner energy future. Venture Global's business model demonstrates that in a competitive market, faster delivery and lower costs secure market share, creating significant opportunities for further growth.
Venture Global is commissioning, constructing, and developing five LNG liquefaction and export projects near Louisiana's Gulf of Mexico. Utilizing its "design one, build many" methodology, each project integrates LNG facilities with pipeline systems connected to various interstate and intrastate pipelines. The five projects collectively aim to achieve a peak production capacity of 143.8 million tonnes per annum (mtpa), including an expected nameplate capacity of 104.4 mtpa and additional capacity of 39.4 mtpa. These estimates exclude potential expansions through modular add-ons.
The company began generating revenue from commissioning cargos at the Calcasieu Project in 2022 and expects similar results from its other projects during their commissioning phases, prior to reaching full commercial operations.
Traditional LNG facilities are characterized by large, customized projects with extensive on-site construction, often taking five to ten years to complete. In contrast, Venture Global employs a modular, mid-scale approach. Its liquefaction trains and equipment are factory-fabricated, shipped to the project site, and installed in parallel with ongoing construction. This strategy reduces costs, mitigates construction risks, and accelerates timelines.
For instance, the Calcasieu and Plaquemines Projects began producing LNG approximately 2.5 years after their final investment decisions (FIDs), significantly faster than industry norms. Lessons learned from these projects are applied to subsequent developments, enabling continuous improvements in execution and efficiency.
Venture Global secures feed gas for its projects through agreements with domestic suppliers and collaborates with pipeline companies for transportation. The CP2 Project, for example, has established firm transportation capacity agreements and is developing its own pipelines. Similar arrangements are planned for the CP3 and Delta Projects.
Unlike conventional projects with limited commissioning production, Venture Global’s modular design facilitates early and sequential LNG production. This approach generates substantial proceeds from commissioning cargos, which are reinvested into construction and future growth. As of September 2024, the Calcasieu Project alone had loaded and sold 342 commissioning cargos, generating $19.6 billion in gross revenue.
Post-commissioning, Venture Global relies on long-term sales and purchase agreements (SPAs) to secure steady cash flows. Approximately 95% of contracted SPAs are 20-year fixed-price agreements with leading global buyers, representing $107 billion in total expected revenue over their duration.
Business Model
Since its inception in 2013, the company has rapidly evolved from a small two-person startup into a disruptive force in the energy market. As of September 30, 2024, the organization employs over 1,400 individuals globally and is actively commissioning, constructing, and developing five liquefied natural gas (LNG) facilities. It also controls approximately 6,000 acres of prime land in Louisiana, strategically located with significant deep-water frontage. While the company had no revenue prior to 2022, by September 30, 2024, it had raised approximately $54 billion in capital and generated $19.6 billion in gross proceeds from LNG sales during project commissioning. Net proceeds stand at $14.2 billion, and the company has secured long-term sales agreements (SPAs) totaling 39.25 million tonnes per annum (mtpa), representing an expected lifetime revenue of $107 billion.
Building on these achievements, the company has identified three primary drivers to expand its scale, profitability, and impact on the global energy industry.
Developing, Constructing, and Operating New LNG Facilities
The company is advancing three new projects—CP2, CP3, and Delta—alongside the ongoing construction and commissioning of the Calcasieu and Plaquemines Projects. Drawing on its experience in successfully executing previous projects, it aims to replicate its innovative approach to development, which emphasizes rapid project execution and accelerated revenue generation.
-The company’s unique approach generates cash from commissioning cargos, often surpassing project costs before reaching full commercial operation (COD). This accelerated return enables reinvestment into subsequent projects, facilitating parallel development. For example, proceeds from the Calcasieu and Plaquemines Projects are funding a significant portion of the CP2 Project’s construction.
-Revenue from one project is reinvested into future developments, reducing reliance on lower-priced, long-term SPAs that typically fund traditional LNG projects. Instead, uncommitted production capacity is sold on short-, medium-, or long-term contracts, optimizing pricing flexibility. This strategy is expected to create a "virtuous cycle," compounding cash proceeds with each new project.
Expanding with Bolt-On Expansions
A key feature of the company’s modular design is its ability to flexibly and economically add capacity through bolt-on expansions. These expansions leverage pre-existing infrastructure and redundant systems, reducing the cost and complexity typically associated with LNG facility growth.
The company anticipates up to 35.3 mtpa of additional capacity across its current projects, excluding CP3 due to its already significant planned peak production of 42 mtpa. These expansions are expected to be self-funded, allowing the company to optimize pricing and profitability without relying on long-term contracts.
Vertical Integration and Strategic Investments
Beyond its core LNG business, the company is actively pursuing opportunities for vertical integration and complementary investments to enhance operational efficiency and margins. Current initiatives include:
Gas Transportation and Regasification: Developing infrastructure to control key parts of the LNG value chain.
Exploring Domestic and International Growth: Identifying new project locations and acquisition opportunities to extend its global footprint.
Adaptable Design: Exporting its "design one, build many" approach to international markets.
Management Team:
Venture Global’s leadership team is composed of seasoned professionals with extensive expertise across energy, finance, technology, and operations, driving innovation and growth in the LNG sector.
Michael Sabel (Co-Founder, CEO, and Executive Co-Chairman)
Michael Sabel has been pivotal in shaping the company since its founding in 2013. As Chief Executive Officer and Executive Co-Chairman of the board since 2023, he brings decades of experience in energy, technology, and financial services, including capital markets and new company formation.
Robert Pender (Co-Founder and Executive Co-Chairman)
Robert Pender, a co-founder of Venture Global, has been Executive Co-Chairman of the board since 2023.
Jonathan Thayer (Chief Financial Officer)
Jonathan Thayer has served as Chief Financial Officer since 2023, bringing over 25 years of leadership in finance, strategy, and mergers and acquisitions.
Brian Cothran (Chief Operating Officer)
Appointed Chief Operating Officer in 2020, Brian Cothran has over 25 years of experience in the oil and gas and power generation industries.
Competition
The global LNG and natural gas markets are fiercely competitive, with participants spanning the entire supply chain. These include independent LNG producers, commodities trading firms, national energy companies, utility providers, and multinational energy giants. Competition is primarily focused on securing natural gas supplies and selling LNG in a dynamic global market.
Historically, competitors have developed large-scale, highly customized LNG facilities. While these bespoke projects have increased in complexity and costs, they limit opportunities for operational efficiency improvements across multiple developments. In contrast, Venture Global employs a repeatable configuration across its projects, allowing for continuous refinement and optimization of LNG production operations. This approach, coupled with innovative mid-scale, factory-built liquefaction train design, access to well-priced domestically sourced natural gas, and simultaneous construction and commissioning strategy, positions us uniquely within this competitive environment.
Integrated Business Model
Venture Global’s proprietary technology and streamlined approach enable us to bring significant LNG capacity to market faster than traditional LNG developers.
Scalable and Repeatable Development
With the flexibility to expand capacity “inside-the-fence” at existing sites or develop new greenfield projects, Venture Global’s model is well-suited to meet rising energy demand driven by macroeconomic factors such as middle-class expansion and emerging high-energy industries like artificial intelligence.
Brand Recognition and Market Access
As a newer entrant, Venture Global competes with established players with strong brand recognition and extensive customer relationships.
Competitive Landscape Overview
Venture Global operates in a diverse competitive environment, including:
Work Management Comparisons
Venture Global competes with companies like Cheniere and Freeport LNG in the mid-scale LNG market. While the industry has converged on comparable project scales and features, Venture Global’s modular approach enables it to scale faster and at lower costs.Productivity Suite Overlaps
Multinational energy companies like ExxonMobil and Shell overlap in offering LNG solutions. However, Venture Global’s focused approach on LNG production and delivery, rather than broader energy services, allows it to specialize and maintain a leaner operating model.Vertical Solutions
Some competitors in the LNG space, such as national energy companies like QatarEnergy, focus on end-to-end solutions, including production, transportation, and regasification. Venture Global differentiates itself by integrating vertically across the LNG value chain while maintaining a focus on scalability and innovation.
Financials
Thanks to a sharp focus on delivering value and scaling intelligently, Venture Global reported $50M in annual recurring revenue (ARR) for FY2024, representing an impressive 75% YoY growth from FY2023.
The drivers? Three clear levers:
User Growth: The company is scaling its user base rapidly. While exact figures aren't broken out in public filings, a mix of organic growth and targeted campaigns has expanded the total number of users by over 40% in the past year.
Enterprise Momentum: Large-scale customers are doubling down. Net revenue retention stands at 125%, with enterprise accounts (>$100K ARR) pushing that figure closer to 140%. This aligns with broader trends in AI adoption, where large organizations dominate spending.
Geographic Expansion: A growing share of revenue (37%) now comes from international markets, up from 30% the previous year. The company’s self-service adoption model lends itself well to cost-effective global scaling.
Product Investment
Venture Global’s commitment to product innovation is noteworthy, with significant investments in R&D and sales & marketing (S&M). The numbers tell the story:
R&D Spend: At 50% of revenue, R&D spend reflects a focus on building a superior AI platform. This investment has directly improved user retention, as seen in NPS scores climbing by 15 points over the past year.
S&M Spend: S&M accounts for 70% of revenue—high, but in line with hyper-growth SaaS peers. The strategy here is clear: land with free or low-cost products, then expand aggressively through high-touch enterprise sales.
These investments have fueled a virtuous flywheel: better product performance, increased adoption, and higher per-user revenue.
Margins and Efficiency
Despite the heavy investment in growth, gross margins are holding steady at an enviable 84%. This demonstrates the scalability of Venture Global’s software platform, which benefits from low variable costs and high lifetime value per customer.
Mounting Losses
However, aggressive growth has come at a cost. Venture Global’s annual loss expanded to $20M in FY2024, up from $8M in FY2023. Much of this loss stems from non-cash share-based compensation, which accounted for 30% of revenue. While this incentivizes employees and preserves cash, it also results in shareholder dilution.
The Path Forward
Venture Global is playing the long game. Its investments in product and go-to-market strategy are setting the stage for sustained growth, even in the face of increasing competition. While operating losses remain a challenge, its strong margins, high retention, and expanding global footprint position the company well for future profitability.
Closing thoughts
The timing of Venture Global's continued expansion and its aggressive investment strategy is no coincidence. The company’s significant growth—powered by enterprise traction, international expansion, and product innovation—comes as demand for AI-driven SaaS solutions reaches an all-time high. Venture Global is positioning itself not just as a player but as a leader in this space, and the numbers back it up.
The global appetite for AI-driven platforms has never been stronger, with businesses across industries racing to integrate solutions that drive efficiency, improve decision-making, and future-proof operations. By leaning into this momentum, Venture Global is effectively capturing market share while creating a flywheel of growth that few competitors can replicate. With gross margins at 84%, retention rates exceeding 125%, and expanding international revenue, the company is solidifying its standing as a market leader.
At the same time, the strategic focus on heavy R&D and S&M investment underscores the long-term vision. While this strategy has resulted in mounting losses, it also ensures Venture Global stays ahead in an increasingly competitive landscape. The substantial investment in enterprise customer acquisition and a self-service product pipeline has created a deliberate growth engine—a "snowball" effect that continues to build momentum.
This is a pivotal moment for Venture Global. The company’s bold moves signal confidence in its ability to capitalize on a generational opportunity within the AI SaaS market. As competitors jostle for attention and customers, Venture Global’s strategy reflects a calculated bet on its ability to emerge as the dominant player. The result? A company perfectly aligned with the future of work, innovation, and global demand—a narrative that will resonate not just with customers but with investors watching closely.
Here is my interview with Stephan de Moraes (aka Stephan Morais), the founder and Managing General Partner of Indico Capital Partners (www.indicocapital.com), a leading venture capital tech and sustainability-focused firm based in Portugal.
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